International Journal of Managing Information Technology (IJMIT)

Trends I n Financial Risk Management Systems I n 2020 International Journal Of Managing Information Technology (IJMIT)                                                                 ISSN: 0975-5586 (Online); 0975 - 5926 (Print) http://airccse.org/journal/ijmit/ijmit.html Predicting Class-Imbalanced Business Risk Using Resampling, Regularization, and Model Emsembling Algorithms Yan Wang, Xuelei Sherry Ni, Kennesaw State University, USA Abstract We aim at developing and improving the imbalanced business risk modeling via jointly using proper evaluation criteria, resampling, cross-validation, classifier regularization, and ensembling techn...

PREDICTING CLASS-IMBALANCED BUSINESS RISK USING RESAMPLING, REGULARIZATION, AND MODEL EMSEMBLING ALGORITHMS  Yan Wang1 , Xuelei Sherry Ni2  1Graduate College, Kennesaw State University, Kennesaw, USA 2Department of Statistics and Analytical Sciences, Kennesaw State University, Kennesaw, USA  ABSTRACT  We aim at developing and improving the imbalanced business risk modeling via jointly using proper evaluation criteria, resampling, cross-validation, classifier regularization, and ensembling techniques. Area Under the Receiver Operating Characteristic Curve (AUC of ROC) is used for model comparison based on 10-fold cross validation. Two undersampling strategies including random undersampling (RUS) and cluster centroid undersampling (CCUS), as well as two oversampling methods including random oversampling (ROS) and Synthetic Minority Oversampling Technique (SMOTE), are applied. Three highly interpretable classifiers, including logistic regression withou...